Monday, December 12, 2016

Does bitcoin even make change?

I discovered the Satoshi, a timy fraction of a Bitcoin. So naturally I asked how does one accumulate all the Satoshi into one Bitcoin. How does the block chain do that?

No answer, no where on the web. This does not seem trivial, the Satoshi is 0.00000001 BTC so I presume that some miner finds the total of 1 billion Satoshi out there that was derived from a single Bitcoin Impossible. That is the scalability problem.

So, it seem the Satoshis must be held back and closed relative to the original Bitcoin. That means thr Satoshis is not a usable coin. But the real possibility is that a bunch of geeks got delusional about block chain and they never solved the problem of micro coins.

Something is missing in Bitcoin, likely the savings and loan concept, That is why I got interested in Satoshi; savings and loan needs a fractional coin relative to deposits and loans. So, if a Bitcoin savings and loan is wanted, the pit has to be seeded with bitcoins that are stationary and can comprise the fractional rates based on Satoshi. At leas that is how I reverse engineered the thing,but it is increasingly clear Bitcoin folks are game theorists with little knowledge of commerce.

Just the mere fact that a Satoshi exists and no where in the web can anyone explain how it relates to miners and block chain. That fact alone tells me some serious thinking is missing.

What is missing here is that you have to have fractional banking otherwise pricing doesn't work. Hence, the Bitcoin being useless except for certain types of currency exchange. To use Bitcoin, you will always convert it into real money, digital money from an issuing S&L, you are stuck. Price elasticity solves the banking congestion problem, it is necessary..